The saturation mechanism and nonlinear evolution of the ion sound instability driven by the subsonic ion flow in a finite length plasma are studied by a one-dimensional hybrid model considering kinetic ions and Boltzmann electrons. Three regimes of the instability nonlinear behavior are identified as a function of the frequency of the ion-neutral charge exchange (CX) collision f coll . In the first (collisionless-alike) regime when the CX frequency is low, the instability is saturated by ions trapping in wave potentials leading to the formation of phase space vortexes (PSVs). One of the PSVs subsequently expands and becomes system long in the steady state. The transition to the second (medium) regime occurs when f coll ≳ v p / d , where v p is the PSV expansion velocity and d is the system length. In the second regime, CX collisions convert fraction of beam ions into slow ions that can be trapped in potentials of small scale ion sound eigenmodes fluctuations. The trapping of slow ions results in the formation of a chain of small scale PSVs and the disruption of the establishment of the single system long PSV. In the third (collision-dominated) regime when f coll ≳ γ ( γ is the instability growth rate), CX collisions transform all beam ions into slow ions and the instability is thereby eliminated.